Creative Media & Community Trust Corporation Reports 2025 Second Quarter Results (Form 8-K)

Creative Media & Community Trust Corporation Reports 2025 Second Quarter Results

Dallas-(August 13, 2025) Creative Media & Community Trust Corporation (NASDAQ and TASE: CMCT) ("we", "our", "CMCT", or the "Company") today reported operating results for the three months ended June 30, 2025.

First Quarter 2025 Highlights

Real Estate Portfolio

•Same-store office portfolio(2) was 70.1% leased.

•Executed 47,859 square feet of leases with terms longer than 12 months.

•In April 2025, closed a $35.5 million variable-rate mortgage on an office property in Austin, Texas, using a portion of the proceeds to repay all outstanding obligations under the 2022 Credit Facility.

•In July 2025, signed a lease with a tenant for 30,831 square feet at our office property at 3601 S Congress Avenue in Austin, Texas, along with an additional 30,916 square feet of leases signed across various other office properties.

Financial Results

•Net loss attributable to common stockholders of $(14.3) million, or $(18.94) per diluted share.

•Funds from operations attributable to common stockholders ("FFO")(3)1 was $(7.9) million, or $(10.42) per diluted share.

•Core FFO attributable to common stockholders(4)1 was $(7.2) million, or $(9.53) per diluted share.

Other

•In June 2025, a subsidiary of the Company, as borrower, closed on a $20.0 million revolving credit facility secured by the unguaranteed portion certain of such subsidiary's SBA 7(a) loans receivable and other assets of such subsidiary, subject to a borrowing base calculation, with an outstanding balance of $8.3 million as of June 30, 2025.

Management Commentary

"We made further progress in the quarter on our previously announced plan to accelerate our focus towards premier multifamily assets, strengthen our balance sheet and improve our liquidity," said David Thompson, Chief Executive Officer of Creative Media & Community Trust Corporation.

"Since announcing our refinancing plans in September 2024, the company has completed four refinancings across seven assets and has extended the debt maturities on two multifamily assets. The proceeds were used, among other things, to fully repay our recourse credit facility and to fund growth initiatives - specifically lease up costs and the renovation of our one hotel. In addition, the company closed on a revolving credit facility secured by a portion of our SBA 7(a) loans receivable portfolio and is working to upsize the recently completed mortgage at Penn Field, its creative office campus in Austin after signing an eleven year lease with an investment grade tenant.

"We continue to see an increase in office leasing in activity in the Los Angeles and Austin markets. Last quarter we indicated we had a solid pipeline of office leasing activity which has translated to 78,192 square feet of leasing during the first six months of 2025 and another 61,747 square feet of leases executed in July. In our hotel segment, net operating income increased approximately 5.5% in the first half of 2025 after we completed the renovation of all 505 rooms at our one hotel asset. We anticipate commencing upgrades to the public spaces later this year, setting the property up well for 2026 and beyond. In our multifamily segment, we believe there is an opportunity to significantly improve our net operating income as our occupancy improves, newly developed assets lease-up, we mark rents to market and benefit from cost savings initiatives."

1 Non-GAAP financial measure. Refer to the explanations and reconciliations elsewhere in this release.

Second Quarter 2025 Results

Real Estate Portfolio

As of June 30, 2025, our real estate portfolio consisted of 27 assets, all of which were fee-simple properties and five of which we own through investments in unconsolidated joint ventures (the "Unconsolidated Joint Ventures"). Our Unconsolidated Joint Ventures contain one office property, one multifamily site currently under development, two multifamily properties (one of which has been partially converted from office into multifamily units and is now being classified as a multifamily property) and one commercial development site. The portfolio includes 12 office properties, totaling approximately 1.3 million rentable square feet, four multifamily properties totaling 696 units, nine development sites (three of which are being used as parking lots) and one 505-room hotel with an ancillary parking garage.

Financial Results

Net loss attributable to common stockholders was $(14.3) million, or $(18.94) per diluted share of Common Stock, for the three months ended June 30, 2025, compared to a net loss attributable to common stockholders of $(9.7) million, or $(98.64) per diluted share of Common Stock, for the same period in 2024. The decrease in net loss attributable to common stockholders was primarily driven by a decrease of $6.4 million in segment net operating income and an increase in interest expense of $1.3 million, partially offset by a decrease in redeemable preferred stock dividends of $2.6 million.

FFO2 attributable to common stockholders(3) was $(7.9) million, or $(10.42) per diluted share of Common Stock for the three months ended June 30, 2025, compared to $(3.3) million, or $(33.46) per diluted share of Common Stock, for the same period in 2024. The decrease in FFO2 attributable to common stockholders was driven by the previously discussed decrease in net loss attributable to common stockholders.

Core FFO2 attributable to common stockholders(4) was $(7.2) million, or $(9.53) per diluted share of Common Stock for the three months ended June 30, 2025 compared to $(2.1) million, or $(21.93) per diluted share of Common Stock, for the same period in 2024. Unlike FFO2, Core FFO2 was not impacted by an increase in transaction-related costs and the decrease redeemable preferred stock redemptions or deemed dividends, as these are excluded from our Core FFO2 calculation.

Segment Information

Our reportable segments during the three months ended June 30, 2025 and 2024 consisted of three types of commercial real estate properties, namely, office, hotel and multifamily, as well as a segment for our lending business. Total segment net operating income ("NOI")(5) was $9.8 million for the three months ended June 30, 2025, compared to$16.2 million for the same period in 2024.

Office

Same-Store

Same-store(2) office Segment NOI(5) was $5.5 million for the three months ended June 30, 2025, a decrease from $8.9 million in the same period in 2024, while same-store(1) office Cash NOI(6)2 was $5.8 million for the three months ended June 30, 2025, a decrease from $9.9 million in the same period in 2024. The decreases in same-store(2) office Segment NOI(5) and same-store(1) office Cash NOI(6)2 were primarily driven by a decrease in rental revenue at our office property in Oakland, California, attributable to a decrease in occupancy resulting from a large tenant exercising a partial lease termination option, and by a decrease in income from our unconsolidated office entities due to a decrease in the unrealized gain recognized on their investments in real estate during the three months ended June 30, 2025 compared to the same period in 2024.

At June 30, 2025, the Company's office portfolio was 68.1% occupied, a decrease of (1,540) basis points year-over-year on a same-store(2) basis, and 70.3% leased, a decrease of (1,220) basis points year-over-year on a same-store(2) basis. The annualized rent per occupied square foot(7) was $60.96 at June 30, 2025, compared to $58.85 at June 30, 2024. During the three months ended June 30, 2025, the Company executed 47,859 square feet of leases with terms longer than 12 months at our same-store(2) office portfolio.

Total

Results for office Segment NOI(5) decreased to $5.5 million for the three months ended June 30, 2025, as compared to $8.9 million for the same period in 2024, driven by the aforementioned decrease in same-store(2) office Segment NOI(5) as there was no non-same-store office activity during either period.

2 Non-GAAP financial measure. Refer to the explanations and reconciliations elsewhere in this release.

Hotel

Hotel Segment NOI(5) was $4.2 million for the three months ended June 30, 2025, a decrease from $4.3 million for the same period in 2024, primarily due to a decrease in food and beverage sale revenues:

						Three Months Ended June 30,
						2025						2024
Occupancy						78.4		%				79.9		%
Average daily rate(a)						$	212.92					$	210.54
Revenue per available room(b)						$	166.83					$	168.30

______________________

(a)Calculated as trailing 3-month room revenue divided by the number of rooms occupied.

(b)Calculated as trailing 3-month room revenue divided by the number of available rooms.

Multifamily

Our Multifamily Segment consists of two multifamily buildings located in Oakland, California as well as two investments in multifamily buildings in Los Angeles, California, each owned through unconsolidated joint ventures (one of which, 701 S Hudson / 4750 Wilshire Boulevard, was reclassified from an office segment property to a multifamily segment property as of October 1, 2024, following the substantial completion of the conversion of two of the building's three floors from office-use into 68 for-lease multifamily units). Our multifamily segment NOI(5) was $189,000 for the three months ended June 30, 2025, compared to income of $2.3 million for the same period in 2024. The decrease in our multifamily segment NOI(5) was driven by an unrealized loss on investment in real estate at one of our unconsolidated joint ventures during the three months ended June 30, 2025 as well as a decrease in revenues at our multifamily properties in Oakland, California as a result of decreases in occupancy and monthly rent per occupied unit, net of rent concessions, for the three months ended June 30, 2025 compared to the prior year period. As of June 30, 2025, our Multifamily Segment was 83.4% occupied, monthly rent per occupied unit(8) was $2,458 and net monthly rent per occupied unit(9) was $2,284, compared to 92.5%, $2,647, and $2,469, respectively, as of June 30, 2024.

Lending

Our lending segment primarily consists of our SBA 7(a) lending platform, which is a national lender that primarily originates loans to small businesses in the hospitality industry. Lending segment NOI(5) was a loss of $47,000 for the three months ended June 30, 2025, compared to income of $743,000 for the same period in 2024. The decrease was primarily due to a decrease in interest income as a result of loan payoffs and lower interest rates as well as an increase in expenses, primarily driven by an increase in current expected credit losses.

Debt and Equity

On April 15, 2025, the previously announced 1-for-25 reverse stock split of our Common Stock became effective. All of the

share and per share amounts in this release have been adjusted to give retroactive effect to the reverse stock split.

In April, 2025, we closed a $35.5 million variable-rate mortgage on an office property in Austin, Texas. In connection with entry into such mortgage loan, we repaid all of the outstanding obligations under the 2022 Credit Facility and terminated the 2022 Credit Facility.

In June 2025, a subsidiary of the Company, as borrower, closed on a $20.0 million revolving credit facility secured by the unguaranteed portion certain of such subsidiary's SBA 7(a) loans receivable and other assets of such subsidiary, subject to a borrowing base calculation, and fully guaranteed by CMCT (the "Lending Division Revolving Credit Facility"). The Lending Division Revolving Credit Facility had an outstanding balance of $8.3 million as of June 30, 2025.

Dividends

We declared preferred stock dividends on our Series A, Series A1 and Series D Preferred Stock for the second quarter of 2025. The dividends were payable on July 15, 2025 to holders of record at the close of business on July 5, 2025.

The dividend amounts are as follows:

			Quarterly Dividend Amount
Series A Preferred Stock			$0.34375 per share
Series A1 Preferred Stock			$0.426875 per share*
Series D Preferred Stock			$0.353125 per share

*The quarterly cash dividend of $0.44250 per share represents an annualized dividend rate of 6.83% (2.5% plus the federal funds rate of 4.33% on the applicable determination date). The terms of the Series A1 Preferred Stock provide for cumulative cash dividends (if, as and when authorized by the Board of Directors) on each share of Series A1 Preferred Stock at a quarterly rate of the greater of (i) 6.00% of the Series A1 Stated Value, divided by four (4) and (ii) the Federal Funds (Effective) Rate on the applicable determination date, plus 2.50%, of the Series A1 Stated Value, divided by four (4), up to a maximum of 2.50% of the Series A1 Stated Value per quarter.

About the Data

Descriptions of certain performance measures, including Segment NOI, Cash NOI, FFO attributable to common stockholders, and Core FFO attributable to common stockholders are provided below. Certain of these performance measures-Cash NOI, FFO attributable to common stockholders and Core FFO attributable to common stockholders -are non-GAAP financial measures. Refer to the subsequent tables for reconciliation of these non-GAAP financial measures to the most directly comparable GAAP financial measure.

(1)Stabilized office portfolio: represents office properties where occupancy was not impacted by a redevelopment or repositioning during the period.

(2)Same-store properties: are properties that we have owned and operated in a consistent manner and reported in our consolidated results during the entire span of the periods being reported. We excluded from our same-store property set this quarter any properties (i) acquired on or after April 1, 2024; (ii) sold or otherwise removed from our consolidated financial statements on or before June 30, 2025; or (iii) that underwent a major repositioning project we believed significantly affected its results at any point during the period commencing on April 1, 2024 and ending on June 30, 2025. When determining our same-store office properties as of June 30, 2025, one office property was excluded pursuant to (i) and (iii) above and one office property was excluded pursuant to (ii) above.

(3)FFO attributable to common stockholders ("FFO"): represents net income (loss) attributable to common stockholders, computed in accordance with GAAP, which reflects the deduction of redeemable preferred stock dividends accumulated, excluding gain (or loss) from sales of real estate, impairment of real estate, and real estate depreciation and amortization. We calculate FFO in accordance with the standards established by the National Association of Real Estate Investment Trusts (the "NAREIT"). See 'Core FFO' definition below for discussion of the benefits and limitations of FFO as a supplemental measure of operating performance.

(4)Core FFO attributable to common stockholders ("Core FFO"): represents FFO attributable to common stockholders (computed as described above), excluding gain (loss) on early extinguishment of debt, redeemable preferred stock deemed dividends, redeemable preferred stock redemptions, gain (loss) on termination of interest rate swaps, and transaction costs.

We believe that FFO is a widely recognized and appropriate measure of the performance of a REIT and that it is frequently used by securities analysts, investors and other interested parties in the evaluation of REITs, many of which present FFO when reporting their results. In addition, we believe that Core FFO is a useful metric for securities analysts, investors and other interested parties in the evaluation of our Company as it excludes from FFO the effect of certain amounts that we believe are non-recurring, are non-operating in nature as they relate to the manner in which we finance our operations, or transactions outside of the ordinary course of business.

Like any metric, FFO and Core FFO should not be used as the only measure of our performance because it excludes depreciation and amortization and captures neither the changes in the value of our real estate properties that result from use or market conditions nor the level of capital expenditures and leasing commissions necessary to maintain the operating performance of our properties, and Core FFO excludes amounts incurred in connection with non-recurring special projects, prepaying or defeasing our debt, repurchasing our preferred stock, and adjusting the carrying value of our preferred stock classified in temporary equity to its redemption value, all of which have real economic effect and could materially impact our operating results. Other REITs may not calculate FFO and Core FFO in the same manner as we do, or at all; accordingly, our

FFO and Core FFO may not be comparable to the FFOs and Core FFOs of other REITs. Therefore, FFO and Core FFO should be considered only as a supplement to net income (loss) as a measure of our performance and should not be used as a supplement to or substitute measure for cash flows from operating activities computed in accordance with GAAP. FFO and Core FFO should not be used as a measure of our liquidity, nor is it indicative of funds available to fund our cash needs, including our ability to pay dividends. FFO and Core FFO per share for the year-to-date period may differ from the sum of quarterly FFO and Core FFO per share amounts due to the required method for computing per share amounts for the respective periods. In addition, FFO and Core FFO per share is calculated independently for each component and may not be additive due to rounding.

(5)Segment NOI: for our real estate segments represents rental and other property income and expense reimbursements less property related expenses and excludes non-property income and expenses, interest expense, depreciation and amortization, corporate related general and administrative expenses, gain (loss) on sale of real estate, gain (loss) on early extinguishment of debt, impairment of real estate, transaction costs, and benefit (provision) for income taxes. For our lending segment, Segment NOI represents interest income net of interest expense and general overhead expenses. See 'Cash NOI' definition below for discussion of the benefits and limitations of Segment NOI as a supplemental measure of operating performance.

(6)Cash NOI: for our real estate segments, represents Segment NOI adjusted to exclude the effect of the straight lining of rents, acquired above/below market lease amortization and other adjustments required by generally accepted accounting principles ("GAAP"). For our lending segment, there is no distinction between Cash NOI and Segment NOI. We also evaluate the operating performance and financial results of our operating segments using cash basis NOI excluding lease termination income, or "Cash NOI excluding lease termination income".

Segment NOI and Cash NOI are not measures of operating results or cash flows from operating activities as measured by GAAP and should not be considered alternatives to income from continuing operations, or to cash flows as a measure of liquidity, or as an indication of our performance or of our ability to pay dividends. Companies may not calculate Segment NOI or Cash NOI in the same manner. We consider Segment NOI and Cash NOI to be useful performance measures to investors and management because, when compared across periods, they reflect the revenues and expenses directly associated with owning and operating our properties and the impact to operations from trends in occupancy rates, rental rates and operating costs, providing a perspective not immediately apparent from income from continuing operations. Additionally, we believe that Cash NOI is helpful to investors because it eliminates straight line rent and other non-cash adjustments to revenue and expenses.

(7)Annualized rent per occupied square foot: represents gross monthly base rent under leases commenced as of the specified periods, multiplied by twelve. This amount reflects total cash rent before abatements. Where applicable, annualized rent has been grossed up by adding annualized expense reimbursements to base rent. Annualized rent for certain office properties includes rent attributable to retail.

(8)Monthly rent per occupied unit: Represents gross monthly base rent under leases commenced as of the specified period, divided by occupied units. This amount reflects total cash rent before concessions.

(9)Net monthly rent per occupied unit: Represents gross monthly base rent under leases commenced as of the specified period less rent concessions granted during the specified period, divided by occupied units.